Notes on Neoliberalism, Higher Education, and the Knowledge Economy
Neoliberalism and Higher Education
Neoliberalism Emergence:
- Neoliberalism gained prominence in the 1980s and 1990s.
- Shift from traditional open intellectual inquiry in universities to an emphasis on performativity, focused on measured outputs.
- Increased reliance on strategic planning, performance indicators, quality assurances, and academic audits.
Impact on Higher Education:
- Governments view higher education as essential for economic growth, promoting links with industry.
- Universities seen as key players in the knowledge economy and encouraged to develop entrepreneurial skills.
- New performative measures established to enhance outputs and achieve set targets.
Neoliberalism vs. Globalization
Definition of Globalization:
- A broader phenomenon encompassing technological advancements, impacting commerce, communication, and travel.
- Neoliberalism is only one aspect of globalization, emphasizing free commerce and trade.
Neoliberalism Characteristics:
- Self-Interested Individual:
- Individuals as rational actors optimizing personal interests.
- Free Market Economics:
- Seen as the best method to allocate resources and opportunities.
- Laissez-Faire Approach:
- Minimal governmental intervention, prioritizing market self-regulation.
- Commitment to Free Trade:
- Support for the abolition of tariffs and subsidies, with open economies.
Neoliberal Regulation in Higher Education
Governmentality in Neoliberalism:
- Introduces a new regulatory approach, differing from the welfare liberalism it replaced.
- Focus on market-oriented conduct and entrepreneurial individualism.
- Emphasis on monitoring and control through auditing, performance management.
Classical vs. Neoliberal Liberalism:
- Classical: Advocates for individual autonomy without state interference.
- Neoliberal: The state positively constructs market conditions and individual behavior to foster entrepreneurship.
Neoliberalism, Agency, and Transaction Cost Economics
Agency Theory (AT):
- Describes relationships in work contexts as contracts between principals (employers) and agents (employees).
- Concerned with ensuring agents act according to principals' interests, employing methods of monitoring and control.
Transaction Cost Economics (TCE):
- Explores the efficiency costs of transactions in organizational structures related to market operations.
- Focused on minimizing costs through optimized governance structures appropriate for varying market contexts.
Changes in Professionalism
Shift from Professional Autonomy:
- Increase in managerial oversight and micromanagement of academic roles.
- Declining collegial governance, replaced with hierarchical structures dictating workloads and outputs.
Professional Identity Transformation:
- Professionals reconceptualize identities and relationships within the context of neoliberal management practices, leading to tensions between traditional values and new managerial expectations.
Knowledge Economy and Capitalism
Emergence of Knowledge as Capital:
- Knowledge seen as primary economic resource, leading to 'knowledge capitalism'.
- Influence of various economic theories and the importance of knowledge in drivers of economic growth and productivity.
New Growth Theory:
- Investment in knowledge characterized by increasing returns, influencing economic productivity patterns.
OECD and World Bank Reports:
- Emphasis on knowledge networks, human capital development, transitional adaptations in education aligned with economic demands.
- Calls for collaboration between education and industry for knowledge production and innovation.
Conclusion
- Continued Profession Transformation:
- As neoliberal policies integrate into higher education, the discussion will increasingly focus on the balance between accountability, quality assurance, and professional autonomy in the context of marketization.